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Home My WebLink About922938 ro~ Approved by the Board ~:':; aDd .~feetlve Jaø ~..";',.!-,~¡í~'"·,,i,,' 'r,- 'j ,,·'1-',·, ........ STATE::~?~¡~ .~;:¡ WYOMING OIL AND GAS LEASE 00039( Lease" 06-00 Parcel # 398 Fund Code: AG This ind~nture of lease entered into by and between the State of Wyoming, acting by and through its Board of Land Commissioners as LESSOR, and the following as LESSEE: Craig Settle Section 1. PURPOSE. The LESSOR, in consideration of the rents and royalties to be paid and the covenants and agreements to be kept and performed by the LESSEE, does hereby grant and lease to the LESSEE, the exclusive right to drill for, mine, extract, remove, and dispose of all the oil, gas and associated hydrocarbon substances and gaseous substances and elements produced therewith, including sulphur, hydrogen sulfide, sulphur dioxide, nitrogen, carbon dioxide and helium, which may be produced from the following described land, to wit: ~l i...! Lot 40 (formerly Lots 1-2:S2NE:SE See 2) Resurvey Township: 24 North Range: 116 West of the 6th P.M. County: Lincoln Acres: 315.92 $316.00 ($1.00 per acre or fraction thereof) Together with the right of ingress and egress and the right to use so much of the surface of said lands as is necessary to construct and maintain thereupon all works, building, plants, waterways, roads, communication lines, pipe lines, reservoirs, tanks, pumping stations, or other facilities necessary to the proper conduct of operations there under. Section 2. TERM OF LEASE. This lease shall. become effective on the day and year set out below and shall remain in effect for a primary term of five (5) year~ and for so long thereafter as leased substances may be produced from the lands in paying quantities. This lease may also be extended beyond its primary term in the absence of production of leased substances as may be provided by the statutes of the State of Wyoming and the regulations of the Board of Land Commissioners adopted pursuant thereto. Provided, however, if drilling, completion, testing or reworking operations are being diligently conducted, either during the primary term or during any extension thereof, this lease shall continue in full force and effect so long as such operations are being conducted and so long thereafter as oil or gas may be produced in paying quantities. This lease may be relinquished or terminated at an earlier date as herein provided. Section 3. If the LESSOR owns an interest in oil and gas in said land less than the entire fee simple estate, then the royalties and rentals to be paid LESSOR shall be reduced proportionately. Section 4. LESSEE expressly represents that, if an individual, LESSEE is a citizen of the United States, or has declared an intention to become a citizen, and is over 19 years of age-and if a corporation, is duly qualified to transact business in Wyoming. Section 5. This lease is issued under the authority conferred by Title 36, W.S. 1977 as to the State and School Lands, and Title 11, W.S. 1977 as to Farm Loan lands, and shall be subject to, and operations by LESSEE hereunder shall be conducted in compliance with the specific lease terms set out on the reverse of this lease, and with all applicable state statutory requirements and the regulations issued thereunder, including those providing for: the leasing of State or Farm Loan Lands for oil and gas; the conservation of oil and gas; and the regulation of security transactions. Section 6. HEIRS AND SUCCESSORS IN INTEREST. It is covenanted and agreed that each obligation hereunder shall extend to and be binding upon, and every benefit thereof shall inure to the hêirs, executors, administrators, successors of, or assigns of the respective parties hereto. ~ ... .. Section .7: . SOV'EREIGN ¡HMUNITY. The State of Wyoming and the lessor do not waive sovereign immunity by entering into this lease, and specifically retain immunity and all defenses available to them as sovereigns pursuant to Wyoming Statute 1-39-104 (a) and all other state laws. IN WITNESS WHEREOF, this lease has been executed by LESSOR and LESSEE to become effective on the 2nd day of, June, 2006 A.D. LESSOR, STATE OF WYOMING, Acting by and through its Board of Land Commissioners. -- Phone t .('"vH ~~tate: {?o 303 -j'tJ3-'IR'1 By: ..... Lessee Signature: Address: 5"£3 CitY:t7~~u/j)øD rdlml nœrdetl døcIurtmt to: HumlEtt Oil Company - Land Dept. Homett Plaza - Suite 1500 801 Cherry St. - Unit #9 Fort Worth TX 76102-6881 '" RECEIVED 10/2/2006 at 10:43 AM RECEIVING # 922938 BOOK: 635 PAGE: 396 JEANNE WAGNER LINCOLN CO~NTY CLERK, KEMMERER, wY .. . -.... ~ .. . tJ{)J.. _ f\ -z..._ :¡, ...r. rtt\ ·09~;¿93S SecIion 1. THE LESSæ AGREES: (e) BOND. To furni8h e bond with .. 8ppRIYed ~ anIy CDI1*1Y 8UIhøriad to II.- bo*- In 1118 ~ aI ~ or IUdI øItw anIy _ ...-y be 8C11:1t1111b181o 1118 ........ in 1118..... ...... _ """"" by 1118 IUTWIt .... allIw S_ Bø-.f all8nd CommI.......... Cuo dlk...-1 ~ 1118 P8Y"W1I al811 .......... _ rDyIIIties 8CICI'Uing to 1118 ...... ...... 1118 tørme 1w8aI, _ ~ 1118 full cørnpIi8nœ al811 ....1IItms _ œnditiatw aI tIå -- - 1118.... -11tIIJIIIIIørw ~ ....... _ .... co..JiIiu...d on 1118 P8Y"W1I al811 ~ to 1118 IUtfIIc8 _ ¡"...v"',_" tI1ereøn -.1118 __ IXJWWW ...1118 IUtfIIc8 alwhir::h '- be-. _ or ~ '--d. Suåt bond or....... fumIoIwc prior to 1118 ..........._. allIw ... canI8ÎtI8d in .. __ ...-y be inI:t-...d in IUdI .-- ........ - 1118 ..........-y dotdda ~ 00.,.._ _._. aI drilling 0J*IIÖØtW _ 8IIw IhIt di8covety aI oil or lID. (b)pAYMENTS. To I118k8I111 I8yIIØú 8CaUing IwIIund8r \0 1118 0IIk:8 aI SI8bt l..-IdI_ In_..... 122 Weot 25Ih SInIott, a.,..... Wyaning 82002.œoo. (c)REHTAlS. Prior 10 1118 cII8covety aI 011 or lID in ~ "-10 r-Y 1118 ....... in -..... beginning willi 1118111r8c:1ift ....1w8aI. .. ....... ...... al11.1IO ~ __ or ~"--. ,."., IhIt di-...y aI oil or lID In ~ ~ \0 r-Y IhIt .......In -.... beginning with 1118 Int dIIy at 1118 __ ~.....-ling IhIt __ yew in which __ di-...y_ -. .. ....... - aI -=Z.IIO ~ __ or hcIìøn "--, .- c:Iw1Q8d by ..-..nL Such ..... ., p8id for 8I1y CItI8 yew .... be a'8ditItd on 1118 ruyIIIIy for ttuot ~. Annu8I ........ on 811 '- .... be P8YIIbIe in -.... for INInt yew _ ..n ~ 1h8rMfter. No nøIIc8 aI_ œ.. .... be ....10 1hIt...... If IhIt ...... ie no! p8id on or beb1t IN .... . becarna œ.., nøIIc8 aI....... will be __to IN __. _ el*l8llY aI SO.50 ~ 8CI'II for.... P8Y"W1I wiI be -..I. n. .... ie no!l8gIIIIy ~ 10 r-Y 8itI.-1N _ or IhIt penIIIIy. IU If IN _ _ penIIIIy .. no! p8id -.., thirty (3D) d8ys 8IIw 1118 nøIIc8 aI....... '- be-. .-.ed. IN lit-. will œrmin8Ie 8UIørn8tic8IIy by øpenIIiøn all8w. T8Imin8Iiøn allIw __1I18H no! ,.¡- IhIt ..... al8I1y øbIig8tiøn incumtd ......1hIt __ _.... IhIt øbIig8tiøn 10 r-Y ...... or penIIIIy. The __ II18H no! be M'lllt'-l1O e ..... on ruyIIIIy œ.. for 8I1y I*I8IIY pIIid for I.... ~ aI_ on .. op.IIIing __. (d)ROYAl TIES. n. ~ to be pIIid by __ ..: (I) On oil. øne-eIghIh alttuot pI'\:IQJc8d, uved. _ _ frcm uId WId, 1118 _to be d8Ii-.d 1111118 ....... or to 1118 <:r8diI aI....... into 1118 pipe line to which 1118 ....... ,.,..,. be IXII'1I'I8d8d. (ñ) On lID. including CMÎI rJ...,. lID or øItw hrðo ~ bu.. ItIbeI8nœ8. pI'\:IQJc8d frcm I8id I8nd uved _ _ or 1-.1 off 1118 ___ or In 1118 ~ ø/ ___ or øItw procb:ta tIw8from. 1118 IYWkIII VIIIu8 1111118 willi aI øne-eIghIh allIw lID ., _ ar UMd. pruvided ttuot on lID - 1111118......., IhIt ruyIIIIy Ih8II be one-<Iighth allhIt _ I'It8IiDd frcm IUdI ...... (iü) On... øItw hyd~bu._ ø/....... _ ~ ItJbIIIaoIœs _ ~ pI'\:IQJc8d or _8d. including prop.-. buI8ne. 1UIpIu, nitrogen, œbøn diœoidIt. _ h8IUn. IllIUdI ruyIIIIy - ...... be IIUL8IIy deIermin8d \0 be hlir _ nI8IkInIIbIe. (iv) For røyIII\y ~ on lID _ nIIIInI II8ØI1n8 IhIt vIIIue IIhIIII be _ 8ppRIYed by 1118 ........ - in IhIt --........ allhIt vIIIue aI nIIIInI II8ØI1n81N fIIir c:aeI aI-.ctiøn .... be carwid8nId - e __ iI8m: ptOVidød, '-. ttuot 1118 .......... for IhIt c:aeI aI -.ctiøn ,.,..,. ..,..¡ ........... ø/ IhIt _ or vIIIue only on IIIpt'ØVIII allhIt ....... _ in no -- "".,. IhIt price far glIB, or nIII1nI gMCJIinIt, be leu .... ttuot I8C8ived by IhIt UniIIId S_ aI Anw1c8 for ibI ~ frcm IhIt _field. (v) NIIILnI lID - oil 8du8I1y 1-.1 far op.IIIing ~ upon 1118 I8nd _, ItJIaIP _ 10 1118 ~ ..... "--, lID or liquid ~~bu._ ntIumed 10 IhIt -.ct for .aimI-.g 1118 producIIøn ø/ oil or -=ønd8ry fWCDYMy pu:pøoee .... be ruyIIIIy fnMt. (e) DISPOSITION OF ROYAl'TY OIl AND GAS. To døI'-lO 1he Ieøør. or 10 IUdI ~, linn or carparIIIiøn _1118 ......,.,..,.~, .. røyIIIty oil, lID, or øItw kinchd hrðo~bu.... fnMt aI c:n.g. on 1118 ___...... pI'\:IQJc8d. ar, III IN option allII8........ - in lieu aI_ rDyIIIties in kind. IhIt __ ....10 r-Y 1118 ....... _ _..- price or....... aid røyIIIty oil, lID. or.... kinchd hydoo....bu._ pI'\:IQJc8d _uved. ~ 1118 ...... __ 10 teke 118 røyIIIty oil, lID. or øItw h,do ~ bu... In kind IUdI _ 011. lID, or øIher kindred h;do~bu.. ...., be good me..J_ """Ie oil, lID, or øItw kindntd 1r,G~bu.... n. -- ....1 If ~ ftmish IIanIgot for ruyIIIIy oil fnMt aI c:n.g. lor thirty (30) dItys 8IIw 1118 end al1he ceIendIr mønIh in which the oil I, pI'\:IQJc8d. upon 1he Ieesed prwni_, or 1111he IUdI piece _1he ....... _1118 __ ,.,..,. ....-¡y IIr8It ~, provided, ttuot 1118 .... .... no! be held UebIe far loa or daIrucIiøn ø/ røyIIIty oil ., _ frcm ..- beyond hie canIn:II. n. fnMt IIanIgot aI oil. - '*-in pruvided, ..... eppIy only _long _ 1118 I8id oil ie 1118 It'ØJ*ty allII8 ....... (f) MEASUREMENTS OF PRODUCTION. To MIg8, ___ _.,.",..,¡ lor ____.. producIIøn frcm _ ..... in ""'1....._.... with the .... _ ~ .œpe.d by the Bø-.f all8nd CømmiøÎClW'l_ ntpOI't I8id pnxIuctiøn 10 1118 .......In ~ therwwith. To keep bodes, records, _ ntIDrU perteining 10 1118 pnxIuctiøn frcm 1118 lend '*-in '- - willi - Ihœe perIIIining to IN pnxIuctiøn frcm øII'uI.....1a aperIII8d by the ..... hie øperIIIa, or ~ on øItw .... which IhIIII be opened III" tin-. far 1118 inIpecIIøn aI 8I1y duly aJIharized """"' allhe Ieøør. To fI.miIIh the ....... willi øriginIII pipe tine ntIDrU IhI:tioring the dIIy, mønIh. ~, ........ ~. - ~ aI.. oiIlUI _ willi rnonII1Iy ntIDrU Ihøwing IhIt mønIh. yew, ........ - price aI.. lID _ nIIIInI lID gaøfine _ øItw """*"* pI'\:IQJc8d _ _ frcm 1118 lend ........ Ieued. _1118 _ aI lID ntIumed 10 1118 -.ct. (g) MONTHlY PAYMENTS AND STATEMENTS. Unteu IhIt lime aI P8Y"W1I is ~ n!8nded by the 0IIk:8 at SI.Ide UInda _ In¥IIIIImIInIs 10 ....... ~ on or beIt1nt Ihe tw.1tieth (2OIh) dIIy aI the C8IendI.- mønIh IUCCII8ding the mønIh aI prøducIiøn_18mDYIII - - ø/ oil _ lID frcm _ 18nd. _10 fI.miah ......, mønIhIy __ tt.wwiItI IhDwing In dIIIIIH 1118 qunity _ queIiIy aI the prøducIiøn (~wIIII if rec¡uirMI-' ~) fmm the I8nd tweby Ieaed, _ the quMity _ quelity allIw pnxIuctiøn (~..... -. prw:ticeI) frcm øII'uI....... upon .....,;"g or cønIiguøus I8nd aperIII8d by IhIt ...., hie øperIIIa or ___ _1UdI.... irIonnIIIiøn _ ,.,..,. be clllled for in 1118 farm or r1IpØrt pttIKriIed by ........ (h) WEU.S TO BE DRILLED. To drIII_.",..... ~......... --V 10 reaønebIy øII'uI well. ~ _ pnxIuctiøn frcm Itdjøining .... To drtH 1UdI1IdditionIII_1ll1Udl1irMs ar pIeœs _.. ~ _ -.tilll1o 1118 ~ de¥ekIpnw1t - c:amm.dIII pnxIuctiøn allIw oil _ lID a>nIent ø/ ..... 18nd. (i)lOG OF WEU.S ANa REPORTS. To keep elog. In 1118 fann 8ppRIYed by IN Ieaør, aI ..n willi drtlled by 1118 IeuM on the lends hwein Ieaed, Ihøwing the sInIIII _ c:Iw8cIer aI the farmIIIions, - _ _ minereI deasiIs peretJIIIed by the drill, _ aI caing. IIizIt - ...... set, - IUdI .... InIønnIIIiøn _ the ....... ,.,..,. """" which log or IXIIJ ....., .... be fumIoIwc to IN 1es8ør. To file __ ntIDrU. in 1118 farm pttIKriIed by IhIt ........ III the _ aI..n thirty (30) dIIy period while ..n willi is being dritled. To file .......Iy, or IllIUdI tifMS ullw Ieaør,.,..,. """". m.pe Ihøwing 1118 ....eIøpo,.... aI the sIrucIu-e _ 1118 IøcIIIiøn aI ell .....Is, pipe lina _ .... works 1-.1 in cønnectiøn willi 1118 øper1I\iøns allIw __ upon ..... lend. To III8k8 IUdI øIIw ntIDrU pertaining \0 1he pnxIuctiøn _ Ø8I1Itiøns by 1he IeuM on Mid WId, - ntpOI't IUdI øItw informotIiøn _ ,.,..,. be pøs-..d by 1118 __ on 1118 willis. pnxIuctiøn or ØIIII1ItiørW aI-. on ... on the _ geøIøgic IIrucIunt ttuot ,.,..,. be aI inpartence in IIII'wding proper dItveIø¡.. ,_. _ øperIIIiøn allN ..... Iwwin Ieaed. _ ,.,..,. be allied lor by the....... All logs. ÎnIps. _ ntIDrU .... be IUbmia.d in duplic:IIIB _ .. 0IIiœ aI - UInda - ........,_"" ,.,..,. ....... IUdI ntIDrU _ œnditiatw ...-y wwrent. (j)PRODUCTlON. To",*""" the .....Is upon IN lend '-win IMuc In e ~ _ eIIIcient ........ in .. endMvør 10 rea:tYW .. the oil _ lID ec:anørnicIIIIy possible frcm I8id I8nd - 10 pr-.t the ...... chinIIgoI allhIt oil _ IIDIIwanIer by _Is aperIII8d by 1118 ..... ar -. on .....,;"g or cønIiguaus lends 10 Ihr:iMt '--d Iwwin. All pIsns ar meIhøds for the ~ aI stinUIIIIng or ~ producIIøn on ..... '-win ~ øIher .... those In mrtmøn ... ....,_ be __10 the ....... lor 1IIpt'ØVIII_ being put into __ øperIIIiøn. No pnxIuctiøn 8I_1_" limiting. .-w:tIng. pnIt1IIIng, or øItwwiee IIIfIIcIing 1118 ~ ftam I8id I8nd ..... be ..-...,..¡ .... by the ...... rØ'''''' the __ IimiI, .-w:t, or ~ 1118 nIIIInI pnxIuctiøn frcm I8id I8nd in eny ..., or In eny -. ItJIaIP willi the .."..,. in writing at the ....... _ hed .. øbI8ined. (k)SUSPENSION OF OPERATIONS. Should 8I1y willi drilled upon ..... ~ by_ -- ~ pnxIuctiøn aI otl, lID. or øIIw h).do~bu._ in ~ qIa'1tiIies _ if the -- is ....... Iø eeIIIbtish e -.r.::m.y nw1œt for 1118 oil. lID or hydra(;.. bu... pI'\:IQJc8d frcm..... _1,1118 __,.,..,. eppIy for _ the.......,.,..,. grent permission for the suspIInSiøn aI pnxIuctiøn øpet8Iiøns until such ..... u . -.clay nw1œt far the product frcm I8id willi .,., be developed. c..ing 1118 lime 8I1y IUdI ~ aI øpe-IIIiøns i. in eIfIIcI, IhIt -- ..... cønIirue to r-Y Ihe ....... _ all2.lIO ~ 8CI'II or~ "-- puvIded by (c) 1IItINe, - _ __ ..... ~ In 1IIfecI_ \hough oil or lID _ being ~frcm _lends. (1)DIlIGENCE-PREVENTION OF WASTE. To -.- __ dll;g.,c. in drilling, prøcb:ing, - op.IIIing aI....... on the I8nd mver.d herIIIJy. unIae .....,¡ 10 SUSf*1d OIL AND GAS LEASE TERMS ¡m[ilii~[~ ~ 000397 0J*IIÖØtW ~ is or..- by the IeeeIJr; 10 '*'Yon" Ø8I1Itiøns -.-In e good - workmrAlke .......In ........do..... with ~ meIhøds _ prKIica, t.vIng œ.. ~ lor IhIt pt-.tiøn aI_ aI oil _ øa. or 1118 -...... ai_to 1118 oil or lID œ.ing - or _10 1118 daIrucIiøn or...., allUdI depøeita. 1118 p'-.IItiøn_ 00. _.-on allII8 It'ØJ*ty far ~ II'ØIb:Iive 0J*IIÖØtW _to IhIt ,..." _ SIIfIoIy aI warIaIwI_ ~ 10 plug ..".." in .. ~ ....... 8I1y willi _ ....4....'" II, - not 10 .......", 8I1y willi wittIcU permission allII8 ........ no! to drill 8I1y willi within two tu1drwd (200) fIIIII al8I1y allIw øuIer ~ aI_ I8nd ~ tweby. .......to pi.-:! 8IIinIII '*'*-øe by....... drtlled on ..... Itdjøining .... .... 200 fIIIII frcm 1118 P"'I*IY "'- \herwø/; 10 cøndur:t 811 0J*IIÖØtW sutJet:110 IN inIpecIIøn allIw '->r; to '*'Y out 1111118...... ~.. __ orden _ ~ allhe....... rIIIIIIive to the pr8YWttiøn ø/ _ _ prM-....... ø/ IhIt It'ØJ*ty _ 1118 hMIth _ SIIfIoIy aI """"'*' including 1118 repIW1Iing _ -.ding d driHi!Ig .. _ øItw __ disIurb8d.by drilling Ø8I1Itiøns - on fIIiUe rllIw ..... .,Ii> dO 1118 Ieaør IIhIIII '-Ihe riøtt. IøgeIIw with øItw rttCIØUrw. Iw1tin ptOVidød, Iø...... on the P"'I*IY 10 ""'* cIIrnege or pr-.t _ III 1118 ...... _ tD _ by _ cønfønn 10 vIIIíd""-- ~ pNKribed '" ntimburw IhIt _ allIw 1UtfIIc8. If........ 1118 Ieaør. or..... aI gnozing riItD "-- for __ demegee ...... _ ...., Iø .....v._._ "" ......, puvIded, ttuot 1118 .......... no! be held rapønIibIe for _ aI prIJYÌdM1C8 or 8diøns beyond hie a¡nItoI. (m)TAXES AND WAGES-FREEDOM OF PURCHASE. To r-Y. when œ..,,_1ewfUIy ---...d _1evied......1Iw __ allhIt _ aI Wyarning ~ i......_._.., oiI_ lID pI'\:IQJc8d frcm the lend -.-, ar øItw riItD. P"'I*IY or _ allhIt ..... to 8CCIIIrÚ lilt warIaIwI - empIøyeø carnpIIIIe frMdøm aI~, _10 r-Y ell -øe- œ.. warIaIwI_ ~ in co. .r....._.... willi 1118 __ aI the StIde aI Wyoming. (n)ASSIGNMENTS OF lEASE-f'RODUCTION AGREEIÆNTS. Not to euign this __ or 8I1y ............... rØ' UJIIII 8I1y partiøn allIw '- pwn;s., ItJIaIP willi 1118 .....,¡ in writing allIw Ieaør Int hed _ abIeined. All ..-ridIng røyeItiM 10 be -. must "- the IIIpt'ØVIII allIw Bø-.f or by 1118 0IIiœ aI - l..-IdI _ lmleetn.....,. when 8UIhørity 10 do ., ha ~ ~ by the Bø-.f _ wiH be _ willi 1118.... n. _ _1118 right aI ~~III atlUdl overriding rDyIIIties when in its opinion they becøne ---... _ ....... _ ....-.... to Ihe prøper deveIøp...... ø/ IhIt Ieesed 18ndI. (o)DELIVER PREMISES IN CASE OF FORFEITURE. To del'- up 1118 '--d""""", with ell ~ j¡,...v.",_" ......, in good order _ cøndiIiøn in .- aI farfIIib.n aI tIå __. IU tIå .... no! be -..d Iø pr-.t the 18mDYIII. IIIIwIIIiøn or ........ aI equi:Inw1t - i...,..v....._obo in the ardirwy cane at øperIIIiøns. SecIIøn 2. THE lESSOR EXPRESSlY RESERVES: (e) n. right to __ HI, or øIherwi.. dispose allIw IUtfIIc8 aI_18nd emIJr.-I wiIhin this -- ...... exitIIing __ ar __ '--- er.d8d, _ in -...:u.do. oCOI with the .... aI the Bø-.f all..end Cotntniaiar. Ineøfw _ 1118 IUtfIIc8 ie no! ~ for the ..... allIw ..... in the cøndur:t aI 0J*IIÖØtW henIunder. - (b)n. righllo __. ..... or DIhrNise dlspœe aI øItw mirw1II or UaJrfIIce ~ not CiØYW1Id by the 1eeH. In eccørdencI willi the IIppIIcIIIIIe 1ewII_ .. .... allII8 Bø-.f aI l8nd Comrniesiøtws. (c)Fmm _ øperIIIiøn aI tIå __, IhIt IUtfIIc8 ..... henIIDII:Ire or..- far righIs-aI.-y - - - _Ihe right 10 grent 1UdI.... righIs-aI.-y _ __ pruvided by 1118 __ aI the SI8bt aI ~ _long _ IUdI righIs-aI.-y _ - do no! mnIIicI with the øperaIiøne far oil _ lID on the lend I.-ein '--d. (d)n. right 10 ntfuse 10 aItnII1iIlIw Ieuotd lends 10 e unit pIen aI ~ If 1118 Bø-.f finds IUdI ecIiøn would impeir 1118 ........ .-- right 10 teke 118 ruyIIIty gu in kind _to pun:hue lilt øItw lID ~ Iø IhIt '--d lends e provided In SecIion 3(.)bØ>w. (e)The right 10 __ or modify IhIt qu.-otity _.- aI pnxIuctiøn 10 IhIt _ ttuot _...-y be eIimnIIIed or ttuot pnxIuctiøn mey cønfønn 10 1118 ....... fIIir ....... aI ........ pnxIuctiøn ...... 8I1y IyM8n aI ~ ar NIIIionIIIcaneitnwII _ prarIIIiøn aMIørized by 18w. (!)In 8ddItiøn 10 118 right to teke 118 røyIIIty lID in kind. IhIt ...... _ _ right end option 10 ~ lilt øItw lID pI'\:IQJc8d for _ or... off the '--d.... This option ..... be -a-IonIy If Ihe Bø-.f finds ttuot 1118 ..... ha _ _ ie willing Iø 8CCtIIIe barw !idol ø/fIIr frcm e ~ who inIenda 10 .... or Ir8nspørt the lID .... ~ .."..,.,..,. - ttuot one ar mønt ~ ~ (I.e., pun:t--. who will ..., COI'1U118, or'" 1118 lID far ... or a>nampIiøn entirely within 1118 S.... aI Wyaning) .. willing _ ...to pun:hue the lID upon terms reaønebIy can~..... 10 end IllIeI8t _ fIIwnbItt 10 the -- - thøM aIf8ntd by 1118 ~~. The Bø-.f IheH __ this option_ permit.. ___.....If K finds IhItI no ~ ~ ie willing _ _10 ~ the lID ~ ...... which .. reaønebIy 000.,..-.....10 _IIIIMIII_ ~ 10 1118 ..... ,. e c:andiIiøn 10 1UdI...ïvw, e sIIIisfIIcIary egr.....,¡ ,.,..,. be 8f1IBtwd irm by which IhIt pnxIuctiøn aI its royIIIty lID ...-y be dIñrr8d ..... K .,., be pI'\:IQJc8d _ _ lor a>naIII1pIiøn - ... enIitIIIy wiIhin the SI8bt aI Wyaning. SecIion 3. APPRAiSAl OF _ROVEMENTS. The __ _ "- the right sutJet:110 the provisions aI TIlle 311, _ 10 SIeœ _ S_ SchøøIl..-IdI. _ TIlle 11, _ 10 StIlle l... _ ~._"" Bœrd lMIds, W.S. 1977, \0 IWtIIMt 8I1y ....._,_.......,.¡ by..... within e rMIIØI1IIbM time ..... the ~ aI this __. '--....ttuot 8I1y IUdI I,.... v....... obo no! ,.""."".¡ within e ___ lime 8IIw ............ aI tIå ........ be disposed aI ~ 10 the ...",. -.tes. SecIion 4. FORFEITURE ClAUSE. n. Bø-.f II18H '-1118 pIMW _ 8UIhøriIy 10 cencIII '- prøand by fraJd. deœII, or ,........_........... or for 1118 ... aI the ..... far unIewruI or iIIegeI IUIpØS8S. or lor the vIøIIIIiøn allN cuverwà allII8 __, ~ ~ proal 1Iweøf, in 1118 -.I thIII the __ ..... ....... in 1118 ..- r........ ~ or còe.. ....ce aI 8I1y ø/ Ihe 1IIrms, 1XIY8IW1IS, -1Ii:IuIIIIiøN '*-", or allII8 ø-wIIIl1tIJIIIIiøns prornuIgIIIed by the Bø-.f all8nd em....... ... _ in fan:e on the ....1w8aI. the ..... shIIII .."" nøIIc8 allUdI fllikn or defIIIj ..... by per-.! ..w:. or by certified or I8gÍSI8nId ...1 ~ IhIt __. _ If IUdI fIIihn or defIIIj a>r1Iin&-. for e period allI*ty (30) dIIy. 8IIw the ..va ø/ IUdI nøIIc8, Ihwo _ in IhItI __ 1118 ..........-y, III ita option. dIIcIere . farfIIiILn _ cencIII this ..., wher-..pøn .. rights _ prIviMga. __ by the -- twanIer shIIII ~ _..... _1118 _...-y""""" _teke ~ aI Mid prerniea or 8I1y 1*1.....,. n- provisions .... not be ~ Iø ~_ -.:iM by ...... 8I1y IegeI ar ~ rwnedy which IhIt Ies8ør might ...-..- '-- A ...ïvw ø/ eny ~.,... or farfIIiIure .... no! pr-.t 1118 c:ratIIIIIIøn _ farfIIib.n aI .. lit-. by eny øItw..... aI farfIIiIure, or for 1118 _ ..... øca.wring 1118I1y øItw time. SecIion 5. RElINQUISHMENT AND SURRENDER. This __,.,..,. be ~_ ....-..cIeNd Iø ....... _10 ell or 8I1y IegeI ~ aI_ ... _ ~ (e) If no øperIIIiøns '- -. anb:I8d......lhe... on the I8nd to be~. 1118 -- shill! file willi IhIt S_ l8nd _ _ Stldeløen _ "-WIt BøMI, e wriIIen "¡inquishrnn or eurrender, cUy Iigned _ ecN IOwIedk _ MIlling....... ttuot no Ø8I1Itiøns "- ~ anb:I8d on 1118 lend. n. ~ .,fiIed ..... beaIme ttIfIIdIve on 1118 dele _ høt.r aI ...,.;pc"-- in the ø/fic:e aI the DintcIDr or III .... .... ..... if IUdI be ., epecm.d by 1118 __....... If the I8id rIIIInquishtn-. fIIiIs III _ttuot no 0J*IIÖØtW '- ~ ÌXInducIed. the IIIr8c:Iift .... aI............... ..... be 1118.... 1118 ,.¡incµehrnwt Is 8ppRIYed by 1118 ø.:..u. (b) If øpeIIIIIøns "- been anb:I8d......1Iw IeIIse on I8nd ~ to be ~ the IeuM shIIII give siJdy (60) dIIys nøIIc8 _ .... fh willi 1118 Dir8CIDr . wriIIen ,.¡Inqui...... or eurrender cUy lido ~ _ MIlling .-. !hili øpeIIIIIøns "- be-. anb:I8d on the lend. The noØnquishment ...... no! beaIme ~ until the lend _ the _Is tI1ereøn .... "- ~ pItoœd in cøndiIiøn """"""10 ....... _ .... "- be-. IIIprDWId by 1118 S_ Oil _ Ges Supervisor. All ....... bemming œ.. prior 10 e .......... or rIIIinquinnwII bemming 1III\tcIive. .... be p.yebIe by IeuM .- P8Y"W1I"-- .... be -....s by........ A...............1WYing becøne ~ tt... _ be no rttCIØUrw. by..... _ 1118 __ _ "'1hIt ~ .....,.,..,. no! be nti__